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Mercer/CCH Guide for Employers Inside March 2011 TOP RECRUITMENT TRENDS OF 2011 Number 5 By: Simon Parkin and Shane Creamer, Granite Consulting. This article was presented at the HRPA Annual Conference & Trade Show, held in Toronto on February 2–4, 2011. © Granite Consulting. Reproduced with permission. Mercer identifies five key roles HR The headline for the majority of organizations in Canada in 2011 is leaders must play in ‘‘Hiring is a top priority for us once again’’. The Canadian labour market M&A ................... 4 has experienced a roller coaster of a ride over the past few years. According to economists, our economy is close to regaining the jobs it Attendance lost during the 2009 recession. During the recession, many companies Management: Renewed Systemic abandoned their recruitment efforts and now face the tough challenge of Discrimination Risks ... 5 not only rebuilding their brand as a leading employer, but also rebuilding their recruitment function and overall talent strategy. Q & A Are employers Obviously the impact of the recession wasn’t just felt by companies — required to investigate the trust and loyalty of employees toward their own organizations have every complaint of also greatly diminished. Employees continue to feel a sense of insecurity discrimination? ......... 7 with their current organizations, and companies need to adapt their recruitment practices to deal with this factor as they gear up to recruit. Job Legislative Update ..... 8 seekers, especially the passive ones, are less trusting of the companies On the Case ........... 9 trying to recruit them. The recruitment selling message of what a com- pany can offer a candidate needs to be refined and adapted to reflect the News from the U.S. changing candidate perspective. Managing talent key to commanding today’s On the other side of the recruitment spectrum, coming out of a workforce .............. 10 recession means there are more additional active job seekers in the market than ever before. There are the job seekers who are currently not CCH Workday working, and the job seekers who are working and put off their job Leaders ill prepared to search until the economy picked up. So now, it’s a bit of a perfect storm deal with impending in terms of the number of active job seekers on the market. Most compa- convergence ........... 12 nies are overwhelmed by the sheer volume of resumes they receive, and Companies it’s putting a great deal of pressure on their interview, assessment, and unprepared for selection programs. Unfortunately most selection programs aren’t leaders’ sudden loss . . . 13 equipped with the appropriate level of rigour to ensure they identify the Employers offer top talent. workplace flexibility .... 13 1

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Page 1: Top Recruitment Trends Of 2011

Mercer/CCH Guide for Employers

Inside

March 2011TOP RECRUITMENT TRENDS OF 2011 Number 5

By: Simon Parkin and Shane Creamer, Granite Consulting. This articlewas presented at the HRPA Annual Conference & Trade Show,held in Toronto on February 2–4, 2011. © Granite Consulting.Reproduced with permission.

Mercer identifiesfive key roles HRThe headline for the majority of organizations in Canada in 2011 isleaders must play in

‘‘Hiring is a top priority for us once again’’. The Canadian labour market M&A . . . . . . . . . . . . . . . . . . . 4has experienced a roller coaster of a ride over the past few years.According to economists, our economy is close to regaining the jobs it Attendancelost during the 2009 recession. During the recession, many companies Management: Renewed

Systemicabandoned their recruitment efforts and now face the tough challenge ofDiscrimination Risks . . . 5not only rebuilding their brand as a leading employer, but also rebuilding

their recruitment function and overall talent strategy.Q & A

Are employersObviously the impact of the recession wasn’t just felt by companies —required to investigate

the trust and loyalty of employees toward their own organizations have every complaint ofalso greatly diminished. Employees continue to feel a sense of insecurity discrimination? . . . . . . . . . 7with their current organizations, and companies need to adapt theirrecruitment practices to deal with this factor as they gear up to recruit. Job Legislative Update . . . . . 8seekers, especially the passive ones, are less trusting of the companies

On the Case . . . . . . . . . . . 9trying to recruit them. The recruitment selling message of what a com-pany can offer a candidate needs to be refined and adapted to reflect the

News from the U.S.changing candidate perspective.Managing talent key tocommanding today’sOn the other side of the recruitment spectrum, coming out of aworkforce . . . . . . . . . . . . . . 10

recession means there are more additional active job seekers in themarket than ever before. There are the job seekers who are currently not CCH Workdayworking, and the job seekers who are working and put off their job

Leaders ill prepared tosearch until the economy picked up. So now, it’s a bit of a perfect storm deal with impendingin terms of the number of active job seekers on the market. Most compa- convergence . . . . . . . . . . . 12nies are overwhelmed by the sheer volume of resumes they receive, and Companiesit’s putting a great deal of pressure on their interview, assessment, and unprepared forselection programs. Unfortunately most selection programs aren’t leaders’ sudden loss . . . 13equipped with the appropriate level of rigour to ensure they identify the Employers offertop talent. workplace flexibility . . . . 13

1

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Mercer/CCH Guide for Employers 2

working in the job market. The majority of these new posi-The labour market is continuing to evolve, forcing tions will be filled by candidates already employed by

companies to adapt their recruitment programs and other organizations, forcing those companies to recruit toensure they are appropriately aligned. A few of the factors backfill their lost talent from voluntary turnover. Companiesimpacting the labour market of the future include: will need to be fully equipped to not only recruit for their

newly created positions, but also to recruit to fill the void● Employment and job growth will quickly outnumber the caused by turnover within the ranks of their existing

labour force over the next five years, forcing companies employee base. Organizations must be prepared for candi-to look for new and emerging talent pools such as global date counteroffers, multiple offers, and offer declines asimmigration. the inevitable competition for talent heats up once again.

Organizations must be better equipped to close candi-● As Baby Boomers retire and Gen Xers age, many experts

dates during the offer stage, and be prepared to counter-are predicting a shortage of talented leaders in the

offer their own top talent to avoid them from leaving.labour market.

Is your organization equipped to face the reality that● There continues to be a shift away from traditional career

talented candidates will have more options as the yearpaths and work values as age differences in the

progresses?workforce become more pronounced with uniqueemployee attitudes and styles.

#9 — Recruitment In-Sourcing vs. RecruitmentThis predicted evolution of the labour market willProcess Outsourcing (‘‘RPO’’) force companies to increase their focus on the retention of

their own talent — and more specifically their top talent.The United States is currently experiencing a huge

growth in the RPO market as organizations come out of theWe are uniquely positioned through our Recruitmentrecession with a limited bench of recruitment resources.Advisory Practice and work with leading global organiza-We haven’t seen the same trend in Canada. Organizationstions to provide insight on where an organization’s recruit-appear to be spending more time building (and rebuilding)ment strategy is heading in the future. Below we have com-their in-house recruitment programs and then leveragingpiled a list of the top 10 recruitment trends we see shapingoutsourced programs on selective areas of the functionrecruitment in 2011.including:

#10 — Talent Becomes More Mobile in a● the recruitment of high volume, repetitive roles;Stronger Economy

● outsourcing of the candidate sourcing aspect of the pro-It’s no surprise that when coming out of a recessioncess; andthe demand for talent increases. There is a snowball effect

caused when organizations create new positions. These● event recruitment — project-based or short-term

new positions aren’t filled simply by the available talent notramp-ups for specific areas or needs.

In the past six months, we have worked with a numberMERCER/CCH GUIDE FOR EMPLOYERS of large Canadian and global organizations who are

Published monthly as the newsletter complement to the building up their executive recruitment function in-houseMERCER/CCH GUIDE FOR EMPLOYERS, by CCH Canadian Limited. For

to capitalize on greater efficiencies and cost savings assubscription information, see your CCH Account Manager or call1-800-268-4522 or (416) 224-2248 (Toronto). opposed to being 100% dependent on third party execu-

tive recruitment firms.For CCH Canadian Limited

TAMMY BURNS, B.A. (Hons.), Associate Editor(416) 224-2224, ext. 6438

e-mail: [email protected]#8 — Generation Y–Focused Recruitment

RITA MASON, LL.B., Director of Editorial(416) 228-6128 Messaging

e-mail: [email protected]

JIM ITSOU, B.Com., Marketing Manager Organizations are continuing to look for ways to(416) 228-6158

improve their effectiveness not only on the recruitment ofe-mail: [email protected]

Gen Y talent, but from a diversity of talent across different© 2011, CCH Canadian Limited90 Sheppard Ave. East, Suite 300 life stages. Companies need to ensure their recruitment

Toronto, Ontario M2N 6X1branding and messaging is flexible and adaptable toappeal to people at the various stages of life, whether it is a

Page 3: Top Recruitment Trends Of 2011

Mercer/CCH Guide for Employers3

young person graduating from university or a 60 year old push of relevant content and information to the ‘‘nur-looking for a new opportunity. The brand and messaging tured’’ candidates allows them to establish the employ-must be appealing, adaptable, and based on the audience. ment brand and engages a more passive pool of candi-

dates. Many companies are moving away from using aThe biggest factor of Gen Y recruitment that compa- traditional Applicant Tracking System to power their online

nies undervalue is the fact that approximately 30% of career centres and are now utilizing robust Customer Rela-Gen Yers own a blog and/or share everything online with tionship Management (‘‘CRM’’) platforms traditionally usedtheir networks and friends. This should scare any organiza- by sales and marketing teams.tion into ensuring their recruitment experience is candi-date-centric. No company wants a bad product or serviceonline review, and should do everything they can to pre- #4 — The Globalization of Recruitment vent a poor recruitment review that can go viral through a

Recruitment is no longer simply a locally focusedcandidate’s social and professional networks.activity, and more importance is being placed on sourcingtalent regionally and globally. Companies are looking totap into new international talent pools and to uncover#7 — Talent Management hard-to-find skill sets and talents in emerging economies.

This is the one of area of human resources that seems Technology is enabling employees within progressive orga-to have been impacted the most by the recession. So many nizations to work virtually as part of a team rather thanof the companies we work with downsized this HR disci- requiring them to live and work in a specific office location.pline over the past two years. In 2011, we have seen the Recruitment has become a lot more complicated for theseresurgence of talent management as an organizational and companies, and recruiters now need to be able to recruitHR priority once again. Building talent is easier than buying across geographies and sell opportunities to candidatestalent in an increasingly competitive talent market, and from different cultures and backgrounds.companies need to once again increase their focus on themovement of internal talent through a more effective andproactive internal recruitment talent strategy. #3 — Candidate-Centric Recruitment

Many of the companies we work with tend to have aprocess-centric recruitment model, built around recruit-#6 — The Continued Growth of the Contingentment policies and structures that take the human touchLabour Market out of recruitment. Companies often forget that many can-

Contingent labour is often a forgotten talent pool didates are also potential clients or even current customerswithin an organization. In most companies, contingent and need to be treated at all times with respect and pro-labour is a procurement focus rather than an HR one. One fessionalism. Candidates may not have the right skills andin every eight positions in Canada is contract or temporary experience you need today, but that may change in the— meaning that within your company today, approximately future. We work a lot with organizations who want to move12.5% of your workforce is not permanent employees. more towards building a positive candidate experience.Canadian organizations are beginning to realize the impact The best place to start is to look at your recruitment pro-contingent labour has to their bottom line, and are putting cess from the candidates’ point of view.more focus on the talent strategy of recruiting, developing,and engaging this often overlooked talent pool.

#2 — Social Media Recruitment

Arguably one of the biggest changes to recruitment#5 — Talent Pipelining and Nurturing over the past couple of years has been the growth and

Recruitment shouldn’t be a reactive transactional func- focus on social media recruitment. Organizations are real-tion. There must be a proactive degree of focus built into izing the power of leveraging the big four social mediaevery program. Companies are beginning to develop and platforms (LinkedIn, Facebook, Twitter, and YouTube), andintegrate external talent nurturing and pipelining into their are also tapping into countless other online networkingrecruitment strategy and programs. There is an increasing sites that meet specific needs. Many organizations areemergence of in-house candidate sourcing and research failing to recognize that social media is simply anotherteams built into the recruitment structure. Recruitment is platform or medium of communication to utilize in theirquickly aligning more to the sales and marketing function, recruitment efforts. It is the recruitment message that is thewhere the focus is similar to client and prospect nurturing. key to success when trying to harness the power of socialCompanies are building talent communities where the networking mediums for recruitment. Most companies

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Mercer/CCH Guide for Employers 4

spend big bucks on sexy social networking applications, Mercer identifies five key rolesbut often neglect to refine the ever critical messaging that

HR leaders must play in M&Aneeds to engage and attract interest from talent prospects.The message needs to catch the interest of the candidate

United States, New York, February 3, 2011and engage them in a way that imparts the value ofworking with your organization.

Mercer shared on February 3 the five key roles seniorhuman resources (HR) leaders must play before, during andAs recruitment continues to evolve in 2011, there willafter mergers and acquisitions (M&A) activity. These five key

be many more opportunities and platforms for companiesroles reflect Mercer’s extensive M&A consulting experience

to harness the power of the mobile market — iPads andin all types of deals and across global industries and mar-

other tablet computers, and even using Skype as a recruit- kets:ment tool. It is an exciting time with the emergence of newplatforms and technologies, but we need to remember it is 1. Serve as a trusted adviser to executives and the dealjust one of many recruitment channels that might be valu- teamable for your organization based on what skill sets andexperience you are recruiting for. 2. Be the HR/people subject-matter expert

3. Provide timely and actionable input before, duringand after the deal

#1 — The Increasing Demand for ‘‘Super’’Recruiters 4. Help shape the post-close organization

5. Manage the intense flow of information and relatedEvery great recruitment leader knows the biggest dif-employee anxietyferentiator between a high performing and a poor per-

forming recruitment function is the recruiters themselves.Empowering HR leaders to deliver on these keyRecruiters are being asked by their companies to do more

M&A-related roles is the guiding principle of Mercer’s 2011with less these days, which makes it increasingly difficult toseries of M&A ReadyTM training workshops. Now in itsbe successful. The pool of talented recruiters is unfortu-eighth year, the Mercer M&A Ready workshop series givesnately quite small — we estimate that only 10% of theparticipants important insights into every aspect of the dealrecruiters in the market today are difference makers andprocess including; M&A transactions in the context of an

have the ability to make an immediate and positive impactorganization’s business strategy; deal and HR team struc-

on an organization’s recruitment outcomes. The profile oftures, roles and relationships; key human capital issues and

the recruiter has evolved over the years, and many of the HR’s role in managing them; and how HR can ultimatelytraditional skills of recruitment professionals are now obso- help realize the full value of the deal. Participants alsolete. The modern day ‘‘Super Recruiter’’ is technologically receive live deal experience via ‘‘real world’’ case studysavvy, and has the ability to research, prospect, hunt, and simulation.sell. They can also engage, nurture, assess and close toptalent for their companies. Does this sound like the profile ‘‘We believe 2011 is going to be a very strong year forof one of your organization’s leading sales representatives? deal activity. The availability of cash and credit to fund dealsMany would argue that recruitment in the future will align and the continuing trend toward ‘de-conglomeration’ will

release pent-up M&A demand across the globe,’’ saidmore closely to sales and marketing than to HR.Elisha Mayer, Senior M&A Consultant for Mercer. ‘‘SeniorHR leaders, who have not had to ‘worry’ about deals for aAs the focus on recruitment becomes an organiza-few years, now have a fantastic opportunity to refresh theirtional priority once again, the demand for these Supereducation about what it takes to successfully manage HR’sRecruiters will continue to drive an increase in pay ratesrole in M&A. The smartest HR professionals are preparingand salary levels for the industry. Companies will need tofor M&A activity in advance, testing their processes beforeensure they are staffed with these Super Recruiters to bethey are actually needed and revising them as necessary.

best in class recruitment organizations and to provideEarly preparation helps HR professionals avoid costly mis-

strong return on investment for their recruitment efforts.takes.’’

Simon Parkin and Shane Creamer are the co-founders In the Americas, 2011 workshops will be held in:of Granite Consulting (www.graniteconsulting.ca). GraniteConsulting provides innovative Recruitment Advisory Serv- ● Toronto — June 15/16ices and Recruitment Training programs to organizationsenabling our clients to recruit talent more effectively. ● Mexico City — June 15/16

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Mercer/CCH Guide for Employers5

● New York — June 21/22 gies to manage absenteeism have monitored the CoastMountain Bus Company case since 2008. Employers who

● San Francisco — Sept 20/21 found comfort in the B.C. Supreme Court decision in 2009that rejected the B.C. Human Rights Tribunal’s systemic dis-

● Chicago — Oct 5/6 crimination analysis and findings in connection with theemployer’s AMP (Attendance Management Policy/Program)

● Sao Paulo — Oct 25/26 will not be comforted by the recent B.C. Court of Appealdecision that restores the problematic systemic discrimina-For a complete schedule of Mercer M&A ReadyTM

tion analysis.workshops, or to register, please visit www.mercer.com/maready. To learn more about custom workshops, pleasecontact Mercer at [email protected].

A review of the key facts . . . Source: Mercer; www.mercer.com.

Coast Mountain Bus Company monitored individualemployee attendance occurrences, identified employeeswhose absenteeism exceeded average levels and automat-ically enrolled these employees in an Attendance Manage-Attendance Management:ment Program designed to hold such employees account-Renewed Systemic able to defined levels of attendance.

Discrimination Risks forEmployees who maintained expected attendanceEmployers Using Attendance levels were released from the program. Those who did not

were progressed to steps 3, 4, and 5, where specific param-Management Programseters for attendance were mandated. A failure to meet thespecified levels could result in termination.

By: Barbara Humphrey. © Barbara G. Humphrey Profes-sional Corporation. Web site: A number of bus drivers who failed to maintain thewww.barbarahumphreylaw.com. required attendance levels due to persisting disabilityE-mail: [email protected]. Reproduced with issues initiated human rights challenges to this approach topermission. managing absenteeism.

Workplace absenteeism and its costly impact on Cana- In March 2008 the B.C. Human Rights Tribunal held thatdian workplaces continues to present escalating challenges the individual complainants were exposed to disabilityfor most workplaces. A recent comprehensive study of related discrimination in connection with their treatmentabsenteeism in Canada released in June 2010 confirmed under the Attendance Management Program. The Tribunalwhat most employers have experienced . . . rising rates of also concluded that the Attendance Management Programabsenteeism. discriminated on a systemic basis against employees with

chronic or recurring disabilities.The rising costs and disruption of absenteeism haspredictably tested the patience and resources of

The Tribunal ordered the employer to cease applyingemployers. Rising absenteeism rates have fuelled increased

the AMP to operators who experienced chronic or recur-employer efforts to reduce absenteeism. Increased absen-ring disability issues. In April 2009, on review the B.C.teeism rates are encouraging employers to heighten effortsSupreme Court, while concerned that the individual com-to remove from the workplace individuals who persistentlyplainants were exposed to discrimination, concluded thatdemonstrate absenteeism rates exceeding the workplacethe AMP did not discriminate on a systemic basis againstaverage.employees with chronic or reoccurring disabilities.

Understandably this decision was welcomed byThe Problem and Risks for Employers employers and encouraged many employers to continueto enrol employees with absenteeism rates exceedingWhere responses to absenteeism rates exceedingdefined averages into Attendance Management Programs,workplace ‘‘averages’’ import employment sanctions orwithout a consideration of whether the absences werethreaten future employment in the context of disabilitygrounded in chronic or recurring disability issues.related absences, the responses are likely to trigger sys-

temic discrimination.In October of 2010 the B.C. Court of Appeal reviewed

the decision of the B.C. Supreme Court and issued a deci-Those of us with an interest in monitoring the impactof Human Rights guarantees on legally supportable strate- sion in connection with such review. That decision

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Mercer/CCH Guide for Employers 6

restored the Tribunal’s finding that the application of the What’s the Problem? Attendance Management Program to all employees repre-sented prima facie systemic discrimination. The reasons of Employer policies, strategies and practices to supportthe Court of Appeal were as follows: attendance objectives that ignore the human rights status

of disability related absence and the duty to accommodate1. Level 3 of the program enrolled employees with leave employers exposed to increasingly costly risks of dis-

chronic disability issues into the program, even crimination.though the employer knew the employees haddisability issues that could lead to elevated absen-teeism rates;

Impact of the Duty to Accommodate? 2. The placement of employees with absences

It is important to remember that:related to disabilities at Level 3 represented sys-temic discrimination (Level 3 introduced man-

● Disability related absenteeism attracts the Duty todated attendance sanctions for non-adherence);Accommodate;

3. Placing employees at Level 3 based on partial days● ‘‘Accommodation’’ in the context of disability relatedof absence as a result of graduated return to work

absenteeism requires adjusting the average or normactivity represented systemic discrimination.attendance expectations;

It is worth noting that the Court of Appeal found the● Accommodation of disability related absences demandsB.C. Supreme Court erred in the test it applied in assessing

a redefining of the employment bargain, in effectsystemic discrimination. The Court of Appeal affirmed theaccepting the delivery of a lower level of attendancetest of whether it was ‘‘impossible’’ to accommodate thethan what is delivered by employees without chronic oremployee without undue hardship.reoccurring disability issues (subject of course to the‘‘undue hardship’’ limit).The Court of Appeal re-instated the Tribunal’s Order

that the employer must cease applying the AMP toemployees with disabilities.

How Much Absenteeism must beAccommodated?

Critical Implications for Employer Strategiesto Manage Absenteeism In providing counsel and support to employer organi-

zations with respect to attendance and disability manage-1. Strategies and programs that expose employees ment this question is regularly raised. Given the individuali-

with absences beyond ‘‘average’’ or arbitrary stan- zation required in connection with each accommodationdards, where such absences are caused by chronic issue, there is no clear or consistent answer. The limit isor reoccurring disability issues, will trigger systemic impacted by the unique circumstances of each attendancediscrimination. management challenge.

2. Employers risk exposure to a significant risk of sys- While there is no room or place in the current equalitytemic discrimination and costly liabilities where rights context of disability related absenteeism for routeattendance management strategies and programs approaches or responses to disability related absenteeism,involve: there is an opportunity for effective management on an

individual basis. Effective management can reduce one ormore of the following:● Holding employees with disability related

absences accountable to average or fixed● amount of absence;attendance norms;

● frequency or duration of absences;● Enrolling employees with excessive disabilityrelated absenteeism into programs that threaten

● impact of absence on workplace;future employment, in response to a failure toadhere to defined attendance averages ornorms. ● duration of the employee’s presence in the workplace.

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Mercer/CCH Guide for Employers7

guarantee of accommodation of disability relatedLessons to Learn: absences to avoid or minimize the increasingly

costly risks of discrimination.1. Effectively and legally compliant attendance anddisability management is complicated andimpacted by the equality rights guarantees 5. Disability related absences can be managed in aattending disability and as a result disability related manner that responds to the employer’s legitimateabsences.

interest in minimizing the impact of the disability

related absenteeism (i.e. minimize disruption and2. A significant and growing percentage of workplace cost).

absenteeism is disability related; increasingly psy-chological or non-evident disabilities. 6. Effective management of disability related attend-

ance issues demands new strategies, knowledge,3. Absenteeism/Attendance Management policies or tools and above all patience and persistence. 1

practices that are structured to hold all employeesaccountable to fixed attendance requirements,irrespective of disability issues, leave employers Notes:exposed to serious risks and costs attending disa-

1 Trends developing in Ontario with the new Human Rights Tribunal inbility discrimination.connection with complaints of discrimination based on disability and disa-

bility related absenteeism evidence a heightened risk for employers and4. Attendance Management Programs/Practices must escalating liabilities attending discriminatory terminations for disability

effectively integrate the impact of the equality rights related absences.

Q & A

Are employers required to investigate every complaint of discrimination, even when thecomplaint is unlikely to be true?

Employers have an implied duty to investigate allegations of discrimination and/or harassment in the work-place. This duty is often recognized as the key to an effective human rights regime, as it acts as the means by whichthe employer ensures that it is achieving the legislative ends of operating in a discrimination-free environment,and providing its employees with a safe work environment.

In discharging this duty, employers are not held to a standard of perfection, but must at a minimumdemonstrate that:

1. there was an awareness of issues of discrimination and harassment in the workplace at the time of theincident;

2. the complaint, once made, was treated seriously, and dealt with promptly and sensitively; and

3. the resolution to the complaint was reasonable in the circumstances.

These criteria will apply in all circumstances, including those where employers do not believe that thecomplaint is likely to be true. Employers should never simply ignore an employee’s complaint, as the Tribunal mayissue an order against an employer for its failure to properly investigate, notwithstanding the fact that the allegedconduct did not constitute a breach of human rights legislation.

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Mercer/CCH Guide for Employers 8

● enter an employer’s premises to investigate a complaint;Legislative Update● substitute penalties; and

Nova Scotia ● attempt to mediate disputes, with the consent of the

parties.Labour Board Act Partially In Force

Bill 128 received first reading on December 2, 2010,Bill 100, the Labour Board Act, S.N.S. 2010, c. 37, whichsecond reading on December 9, and third reading andwill merge six labour and employment boards into one,

was partially proclaimed in force on February 8, 2011. Royal Assent on December 10. It was proclaimed in force

on February 1, 2011.The in force sections have merged the Labour Rela-

tions Board, the Civil Service Employee Relations Board, theHighway Workers’ Employee Relations Board, and the Cor-

Ontario rectional Facilities Employee Relations Board into a single‘‘Labour Board’’. A full-time chair of the Board will beappointed for a five-year term, and existing arbitrators will Minimum Wage To Hold Steady for 2011 rotate as cases come up for arbitration.

After several years of increases, Ontario hasThe intention of the Bill is to create a more streamlined announced that the minimum wage rate will remain at

and efficient process, and provide more consistency $10.25 per hour throughout 2011.among decisions. Provisions which will merge the Occupa-tional Health and Safety Appeal Panel and the Labour Stan- Ontario’s minimum wage rate has increased by 50 perdards Tribunal into the Labour Board will come into force

cent over the last seven years. At $10.25, it is currently theon a later date.second highest minimum wage in Canada, behind only

Nunavut’s rate of $11 per hour.Bill 100 received first reading on November 19, 2010,second reading on November 23, and third reading and

In fall 2011, the government will appoint a committeeRoyal Assent on December 10.representing both businesses and workers to provide

advice on the minimum wage in advance of the

2012 Budget.Amendments Codify the Powers and Duties ofArbitration Boards

Quebec Bill 128, An Act to Amend the Trade Union Act,Respecting Powers and Duties of Arbitrators and Arbitra-

Reminder: Organ Donor Leave In Forcetion Boards, S.N.S. 2010, c. 76, is now in force. The Billcontains amendments to the Trade Union Act which clarify February 28 the duties and powers of arbitrators when resolving griev-ance disputes. The amendments consolidate arbitrators’ An Act to facilitate organ and tissue donation,powers which were previously spread throughout various

S.Q. 2010, c. 38, which provides for organ donor leave,pieces of legislation and case law.

became effective on February 28, 2011. Under the Act, a

worker who donates an organ or tissue is entitled to anAmong the amendments, the Bill codifies that arbitra-unpaid leave of absence of up to 26 weeks to undergo thetors have the power to:donation and recovery. An employer is prohibited from

dismissing, suspending, or transferring an employee who● summon witnesses and require submission of docu-ments or other evidence; takes a leave for organ or tissue donation. Upon expiry of

the leave, the employee must be reinstated to his or her● determine all questions of fact and law; former position, with the same benefits and wages.

Bill 125 received first reading on November 11, 2010,● extend deadlines;second reading on November 25, third reading on

● issue oral decisions; December 8, and Royal Assent on December 10.

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Mercer/CCH Guide for Employers9

considerably shorter than periods in other restrictive cove-On the Case nants.

Board’s decision that insurance agent was Mason v . Chem-Trend L imited Partnership ,2011 CLLC ¶210-005 (Ont. S.C.J.)independent contractor was reasonable

● ● ● Manitoba ● ● ● Boisjoli worked for the Knights ofColumbus as a general insurance agent, responsible for No evidence that age was a factor inrecruiting, training, and assisting insurance agents, as well employer’s decision not to hire candidate as assisting customers. When he was terminated, hebrought a claim before the Employment Standards Board

● ● ● Ontario ● ● ● White was 59 years old when he wasalleging he was an employee. His claim was dismissed as hired by Queen’s University. Three years later, he applied ashe was found to be an independent contractor (see an internal candidate for a position as assistant area man-2010 CLLC ¶210-043). Boisjoli appealed. ager. He was the only internal candidate interviewed for

the position, although he was not selected. The universityThe appeal was dismissed. The issue before the Board opened the competition to the public, and the position

was whether Boisjoli was an employee or an independent was offered to an outside candidate. White believed thatcontractor. Such a decision is context-driven and depen- he was the most suitable candidate and that his age, whichdent on the facts of each individual case. The Board did not was 62 at the time, was a factor in the university’s decisionerr in analyzing its own statute, and in referring to the not to hire him. White brought a human rights complaint,common law test for determining who is an independent alleging discrimination on the basis of age.contractor, since the term is not defined in the legislation.The Board also did not err in considering materials which The complaint was dismissed. The fact that the inter-were not referred to by either party in their submissions. view notes were missing or destroyed did not indicate anFinally, the Board did not commit an error by following the intention to discriminate by the university. It would notSupreme Court test for independent contractors, and have invited White for an interview, taken notes, and thenfailing to recognize the line of cases setting out a test for deliberately destroyed the notes, particularly if it had nocommissioned sales agents. The Board considered the intention of considering him for the position. Therefore,facts before it in making a reasonable decision. the direct evidence did not indicate that age was a factor in

the decision not to hire White. With respect to the circum-Knights of Columbus v. Boisjoli, 2011 CLLC ¶210-007 stantial evidence, both White and the successful applicant

(Man. C.A.) were qualified for the position, and the committee estab-lished that they had legitimate concerns about White’ssuitability for the managerial position. There was no basisto find that the university’s view that White was not suitable

Broad restrictive covenant upheld for the position was based on stereotypes about his age.

● ● ● Ontario ● ● ● When Mason was hired to work for Whi te v . Queen’ s Un ive r s i t y a t K ings ton ,Chem-Trend, a world-wide company, he signed a docu- 2011 CLLC ¶230-005 (H.R.T.O.)ment that included a restrictive covenant. Upon termina-tion, he would be restricted for one year from competingwith Chem-Trend by providing services to, or soliciting bus-

Employee subjected to harassment byiness from, Chem-Trend’s customers. When Mason wasco-workers was constructively dismissed terminated after 17 years, he brought an action for

wrongful dismissal. Chem-Trend claimed that Masonbreached his restrictive covenant after termination by using ● ● ● Ontario ● ● ● Disotell, who was 36 years old, hadhis knowledge and experience to gain business opportuni- worked at Kraft for 16 years. He was the subject of repeatedties for himself. Mason claimed the restrictive covenant was occurrences of harassment in the workplace, in the form oftoo broad. degrading, impolite, and derogatory comments made by a

number of his fellow employees. Disotell complained toThe wrongful dismissal application was dismissed. his supervisor about the comments, and the supervisor

While the wording of the restrictive covenant was broad, it witnessed or heard a number of the comments as well.was clear, unambiguous, and reasonable. The broad geo- However, the supervisor did not report the harassing com-graphic restriction was reasonable, given the global nature ments, as required by the company’s harassment policy.of the business and the fact that Mason had worked for the Disotell went on sick leave and Kraft conducted an internalcompany in various regions in Canada and the United investigation of the situation. The investigation did notStates. The restriction on competition was also reasonable, involve interviewing any of the employees that Disotellgiven the knowledge of the industry that Mason had built claimed were involved in the harassment, or Disotell him-up, which would make him a competitor to Chem-Trend’s self. In addition, Disotell refused to return to the workplacebusiness. The covenant was only for one year, which was to participate in any investigation, although his offer to

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meet with head office employees was denied. Disotell Interview with Dr. DeLong brought a wrongful dismissal action.

Q: So why is ‘‘talent management’’ important todayThe action for wrongful dismissal was allowed. Given coming out of the recession?

the length of time during which Disotell was subject toharassing comments, and the failure of the employer to DeLong: Despite the recent downturn, which tempo-conduct a serious investigation, there was a breakdown of rarily created an employers’ market for talent, no genera-the employment relationship. A reasonable person could tion of executives have ever faced such a complex andnot be expected to continue his employment in these difficult set of workforce challenges. These include increas-circumstances. Therefore, Disotell was constructively dis- ingly distributed employees who are working across cul-missed, and he was awarded 12 months’ reasonable tures, time zones, and reporting structures. There are alsonotice. growing shortages of skills in critical roles, such as systems

engineers, actuaries, nurse managers, geoscientists, andDisotell v. Kraft Canada Inc., 2011 CLLC ¶210-008 (Ont. veteran project managers, due mainly to the retirement of

S.C.J.) aging baby Boomers. Retiring Boomers, combined withyears of downsizing and limited hiring has also created atremendous shortage of mid-career leadership talent.

At the same time, in some areas, aging workers areNEWS FROM THE U.S. now staying on the job longer than expected. Companies

must keep these workers productive and their delayedretirement is slowing career advancement for restless mid-careers. All this means there are now four generations inthe workplace, with distinctly different orientations to

The article below, ‘‘Expert says managing work, technology, and communication. How do you helptalent is key to commanding today’s workforce’’, people learn faster and collaborate better in this environ-appeared in Ideas and Trends, #719, February 2, ment? Executives are facing all these challenges — whether2011, published by CCH Incorporated, United they know it or not. And how effectively they handle themStates, a Wolters Kluwer business, and is repro- is going to determine their organization’s ability to sustainduced with permission. If you wish to place an a workforce that can innovate and grow the business.order or would like more information on U.S. pro-

Q: There has been a lot written about talent manage-ducts, please contact our Customer Satisfactionment in the last decade. Why did you think there was aHotline at (416) 224-2248 or 1-800-268-4522.need for another book?

DeLong: Virtually everything you read about talentmanagement — or human capital or workforce planning — iswritten from HR’s perspective. There are some excellentExpert says managing talent is key tobooks out there but, frankly, they put senior executives to

commanding today’s workforce sleep. Until now, nothing has been written about talentmanagement from the perspective of senior line managers.

Dr. David DeLong is co-author (with Steve Trautman) ofthe new book The Executive Guide to High-Impact Talent Q: Can you define ‘‘talent management’’ for us?M a n a g e m e n t f r o m M c G r a w - H i l l(www.HighImpactTalentManagement.com). The book DeLong: That’s part of the problem. There’s little agree-shows leaders who believe in the importance of investing ment in most organizations about what this and relatedin people what specific actions they can take to directly terms mean. One of the first things you should do as an HRimprove business performance. John Rex, the CFO of leader in this area is facilitate a discussion among seniorMicrosoft North America says, ‘‘Most executives I know are decision makers in your organization to decide whichfar more comfortable running financial or operational or terms you are going to use and what they mean in practice.product sides of their business. This book does an excel- For example, other concepts like ‘‘strategic workforce plan-lent job of clarifying every leader’s real role in developing ning’’ and ‘‘human capital’’ get used interchangeably intalent to grow their business.’’ Although written for senior companies all the time. If you think about it, there is oftenexecutives, each chapter has a section showing HR leaders no shared agreement and understanding about whathow to apply these ideas to collaborate more effectively you’re investing in.with their business partners. Dr. DeLong, who is awell-known keynote speaker and consultant, shared his As an HR leader, you should start by clearly defininginsights with CCH based on extensive research that went what you mean by ‘‘talent management’’, or whateverinto the book. Additional findings from his most recent term you choose to use. We have found the scope of theresearch are available at his company’s Web site: concept varies widely from one organization to the next. Itwww.SmartWorkforceStrategies.com. may mean managing the entire employee life cycle to you,

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but your CEO might think only in terms of leadership devel- business units you support. This should be someone withopment, succession planning, and so on. Keep working to credibility in the business who can help you discoverclarify that definition both for line managers and your HR where your perceptions differ from senior management.colleagues. Then schedule a meeting with a senior executive who is an

internal customer on the business side. Test your answersQ: But what do you mean by ‘‘talent management’’? and get feedback. You will gain credibility with your internal

customers when you show you’re a student of the busi-DeLong: In the book I’ve written with Steve Trautman, ness issues they face. This is also a critical step in being able

‘‘talent management’’ refers to all the investments in sys- to show how talent management investments are sup-tems, processes, and programs designed to enhance the porting the organization’s strategy.recruiting, development, performance, and retention ofemployees. That differentiates it from the concept of Q. What’s another way HR can work more effectively‘‘human capital’’, which is a broader term, often used to with their business partners?mean ‘‘people’’ and ‘‘human resources’’. ‘‘Strategicworkforce planning’’ is a more popular term for describing DeLong: Risk management is a popular term in busi-the front-end data collection, analysis, and forecasting ness today, but it’s often overlooked when it comes toactivities that determine talent management investments. talent. How are you talking to your business partners aboutThe key is these terms mean different things in different talent-related risks? Too many HR professionals limit thisorganizations, and they lead to tremendous confusion discussion to a mix of demographic and workforce data.unless you continually push to clarify them. And then they combine that with a presentation of rela-

tively vague competency models.Q: So what can HR managers (or leaders) do differ-

ently to engage with senior executives in leading talent The problem is most line executives find thesemanagement initiatives? approaches too disconnected from the reality of their

operations. They need more specific tools and informationDeLong: We have found many ways HR can work more to understand and act on the dangers of not having the

effectively with line management. Begin by demonstrating workforce and leadership team they’ll need in two or threeyou’re committed to making sure talent related invest- years. In our book, we describe how to use a series of toolsments are aligned to support the organization’s strategy. In for more effective risk management. But the place to start isour book, we show how your business strategy is unlikely to identify the presence of specific risk factors. Which ofto give you direction that’s specific enough to create this these represent the greatest threats to your business?alignment. To make your understanding of the currentstrategy explicit start by answering what we call the ‘‘big Shortages of essential talent. Given your stated objec-picture’’ questions. These are questions that demonstrate tives and the anticipated changes in your workforce andan understanding of your organization’s strategic context. If leadership team, what assumptions are you making aboutyou can answer them, then you ‘‘get’’ your company’s the availability of critical talent in the marketplace? Havestrategic intent. And then you’re much more likely to be you identified roles that you’re particularly concernedable to articulate how talent management programs are about when recruiting?supporting leadership objectives. Here are five examples ofthe questions included in our book.

A high percentage of new hires. What risks do subparproductivity and increased new hire attrition pose for your1. Who are the customers or customer segments ourbusiness? Do you know the real costs of failing to onboardcompany serves, listed in order of priority?new managers and workers as effectively as possible?

2. What are the products or services we provide nowDissatisfied employees. Even though attrition probablyand which ones, if any, need to change as we

declined during the recent recession, what assumptionsimplement current strategy?are you making about how changes in the economy,retirement eligibility, and increased employment opportu-3. What is our company’s value proposition and hownities will affect unplanned attrition in key parts of yourdoes it set us apart in the marketplace?business?

4. Who are our competitors (listed in order of pri-A shortage of talent in the leadership pipeline. Do youority)? Why is each considered a threat, and what

have an age profile of your leadership team and yourcan we learn from them?workforce, so you know specifically where retirements aremost likely to come in the near future?5. How does top management measure success now,

and how might that change in the future?Loss of critical skilled employees. Given your business

Take time to detail your understanding of each ques- strategy, what critical capabilities are most at risk in yourtion in writing to really test the depth of your knowledge. organization? How is your company determining whichThen test your responses with a trusted colleague in the individuals have unique knowledge essential to the future

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of your business? What processes are in place to effectively CCH WORKDAYtransfer that knowledge?

These are some of the most costly talent-related riskfactors. You can use these questions to test the quality ofyour department’s thinking about your vulnerability to CCH Workday is an online HR news blog pub-these risks. Then draw on this list to frame risk manage- lished by CCH Incorporated, United States, ament conversations with senior executives in language that Wolters Kluwer company.gets at issues your leaders really care about.

Q: Are there solutions that are particularly effective formanagers who already know their most critical risks?

Majority of corporate executivesconcerned that current leaders are illDeLong: We did more than 70 interviews with senior

executives and top talent experts in researching our book. prepared to deal with impendingOne surprising thing we found was how uninspiring so convergence many solutions are. Talent management has become arelatively mature field in a lot of organizations, but it’s (Posted January 31, 2011)amazing how mundane most existing programs are.

More than two-thirds of corporate executives seeGiven the very real threat of serious talent shortages great danger in leadership being overwhelmed by the

and their significant costs, there needs to be a lot more complex challenges brought about by the current trend ininnovation in the field. That said, we did document some which companies are experiencing convergence,notably creative — and effective — initiatives such as according to a new study released by Egon Zehnder Inter-Microsoft’s internship program, Westpac Bank’s CEO-led national. Convergence involves cross-industry collabora-culture change needed to support a new talent manage- tion, changing business models and companies makingment system, Pfizer’s customized program to improve the structural transformations. In fact, three out of four execu-quality and speed of executive transitions, and programs at tives report seeing convergence in their industry. The maina major retailer and in a high-tech R&D lab that accelerated drivers behind this trend are changes in customer expecta-knowledge transfer to support business growth. tions and technological innovation.

Convergence is impacting a whole spectrum of indus-Here are some questions you should be asking if yourtries — from the advent of the electric car in the automotivegoal is to find more innovative talent solutions:sector to personalized medicine in the healthcare industry— and technology and telecommunications innovation is1. Can you identify three to five companies in youroften at the forefront of these changes. And, as a hubregion similar to your organization, and describetechnology, digital hardware and software is becomingwhat they’re doing to manage talent?all-pervading in traditional branches of industry such asenergy, mechanical engineering, and medical technology.2. Have you reached out to companies of similar size

in different industries to learn specifically howOne of the greatest challenges associated with conver-

they’re addressing these challenges?gence, however, is having people with the right skill sets tomanage the transformation. According to top executives,

3. When you look at new solutions, do you tie your nearly two-thirds of companies believe they do not haveanalysis back to those ‘‘big picture’’ strategy ques- sufficient leadership potential to deal with the changestions I mentioned earlier? driven by convergence. ‘‘In the U.S., three quarters of exec-

utives are fearful of leaders being overwhelmed by the4. How would the more innovative solutions you’re increase in complexity brought about by convergence’’,

considering better support the overall business said Mike Portland, co-leader of Leadership Strategy Serv-strategy and reduce critical talent-related risks? ices, Egon Zehnder International.

As a result, an intensified war for talent is increasinglyIn too many organizations today talent management istaking place across industry — and geographic — borders.‘‘owned’’ by HR. But recruiting, developing, and retainingThe study, conducted in winter 2010, queried 515 tophigh-performing employees and great leaders is much tooexecutives from multinational corporations, as well as smallimportant to be left to one group. Many managers andand medium-sized businesses in countries across theexecutives still don’t understand what role they must playglobe, including: Denmark, France, Germany, India, Italy,in this process, or how to do it. HR managers add muchNetherlands, Sweden, Switzerland, and the U.S.more value when they approach their business partners‘‘Convergence is resulting in corporations developing ultrausing language, frameworks, and techniques that aredemanding leadership profiles for executives who cantime-efficient and demonstrate immediate results.

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manage change and looking globally for the leaders that fit Edwards, senior vice president for AMA Corporate Learningthis profile’’, said Damien O’Brien, CEO, Egon Zehnder Solutions. ‘‘Just a small minority of organizations seemInternational. ready to manage a top-level succession in an emergency,

which means most companies are taking a huge risk byThe pressure on corporate executives has spiked sub- failing to address their bench strength issues.’’

stantially and leaders are required to possess skills andAccording to Edwards, the survey data provide ancompetencies that were once thought of as impossible to

unvarnished perspective of current management succes-find in one individual. For example, leaders today aresion preparedness. ‘‘Our findings aren’t based on an officialincreasingly required to have a range of skills and compe-response from corporate leadership, but instead cometencies, from being vigorous and persistent to being cultur-from middle- to senior-level respondents at more thanally sensitive.1,000 organizations across the U.S. and Canada. In other

Ambitious skill sets. Seventy-eight percent of top exec- words, the findings mirror what people really think. Andutives questioned said teamwork at the management level the respondents weren’t hesitant to share their opinions.has become significantly more important. This was the Barely 3 percent claim not to have an opinion.’’highest in India, with 92 percent of executives indicating

Similarly, survey respondents were critical of theirteams are increasingly critical to managing the challengesorganization’s leadership pipeline, observed Edwards.of convergence. In contrast, only 57 percent of German‘‘Again, the respondents weren’t shy about their viewpoint.executives believe teamwork is becoming more important.Scarcely half believe their company’s bench strength isIn addition, corporate executives across the globe citedeven adequate, and merely 10 percent think it’s robust.’’being ‘‘vigorous and persistent’’ and generalist knowledgeForty seven percent describe the leadership pipeline asand skills as the competencies most in demand now (1.6adequate and 30 percent inadequate.on a scale of 1 to 4, from highly relevant to unimportant).

The ‘‘necessary bite’’ ranked the highest of the skills inPlanning for a smooth management succession isFrance (2.3) and the lowest in Italy (1.0).

more critical than in former years, according to the findings.‘‘A big majority, 71 percent, say it’s more important, 27 per-Resource challenges. Sixty-three percent of corpora-cent that it’s about the same as in the past, and less thantions believe they lack sufficient personnel resources to1 percent think it’s less important, yet organizations neglectimplement the changes made necessary by convergence.to sufficiently plan for such unhappy contingencies’’, saidThis number was the highest in France (86 percent) and theEdwards, who is not surprised by the survey findings. ‘‘Get-lowest in Germany (43 percent). In the Netherlands, nearlyting top leadership to focus on management succession is80 percent (78 percent) of executives see danger of leadersa perennial challenge. After all, even great leaders may notbeing overwhelmed by the increase in complexity broughtwant to consider a worst case scenario. Moreover, finding,about by convergence. France ranked the lowest at 54 per-growing and retaining leadership in waiting are not easy.’’cent.

For the past two years, Edwards said, senior manage-Collaboration. As a result of diminished boundariesment has been focused on cost cutting and survival. ‘‘Butbetween industries, 45 percent of global companies indi-now it’s time for investment in sustainability and competi-cate they now offer products/services in partnership withtive advantage, which must be based on talent. Having theother companies (46 percent in the U.S.).best people in pivotal leadership roles, prepared to step inat any time, is essential for future success.’’S o u r c e : E g o n Z e h n d e r I n t e r n a t i o n a l

(www.egonzehnder.com).Source: American Management Associat ion

(www.amanet.org).

Survey finds one in five companiesunprepared for leaders’ sudden loss Majority of U.S. employers offer workplace

flexibility with informal approach most(Posted January 24, 2011)common

One in five organizations is utterly unprepared to dealwith the sudden loss of its key leaders, according to an (Posted February 17, 2011)online survey of 1,098 senior managers and executives by

A new WorldatWork study, Survey on Workplace Flexi-American Management Association Corporate Learningbility, provides an inside look at employers’ views on flexi-Solutions. Only 14 percent were said to be well prepared,bility. The study was designed to gauge the impact of flexi-w h i l e 6 1 p e r c e n t a r e s o m e w h a t p r e p a r e d .bility programs on employee attraction, motivation andTwenty-two percent report being not at all prepared.retention and also examine the manner in which these

The findings point to a looming management succes- programs are managed. The study revealed that while asion crisis among North American companies, said Sandi vast majority (98 percent) of U.S. employers offer at least

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one workplace flexibility program, most (nearly 60 percent) ● Companies tailor flexibility programs to fit the needs ofuse an informal approach, i.e., no written policies or forms, their workforces as well as their organizational priorities.up to manager discretion, etc., and four out of 10 say flexi- The most prevalent programs are flex-time (flexible start/bility is culturally embedded. The study found that a stop times), part-time schedules (with or without bene-stronger culture of flexibility is correlated with a lower vol- fits), and teleworking on an ad hoc basis (meet a repairuntary turnover rate. person, sick child, etc.). Each of these programs are

offered to some or all employees in more than 80 per-‘‘When it comes to workplace flexibility programs, cul-cent of surveyed companies; when offered they are alsoture trumps policy,’’ said Rose Stanley, a practice leader forthe most commonly used by employees, with flex-timeWorldatWork. ‘‘It’s not about the quantity or formality ofthe highest ranked.programs offered; it’s about how well supported and

implemented the programs are across the organization.’’● Organizations that have a stronger culture of flexibility

Key findings from the study include: also have a lower voluntary turnover rate. In addition, amajority of employers report a positive impact on

● The survey covered 12 flexibility programs and found employee satisfaction, motivation and engagement.that, on average, organizations offer six different types atone time. Different sectors emphasize flexibility pro-

● The study revealed several obstacles to the adoption ofgrams with varying degrees: compressed workweeks are

flexibility programs, which included: lack of training; topmore prevalent in the public sector (68 percent);management resistance (more so than middle manage-part-time schedules are more common amongment); and lack of employee interest in programs suchnon-profit organizations (90 percent); and ad hocas phased return from leave, phased retirement andtelework is more frequently offered by publicly tradedcareer on/off ramps.companies (89 percent). Surprisingly, the study found no

correlation between the number of programs offeredand turnover rates. Source: WorldatWork; www.worldatwork.org.